Janet Yellen's difficult task was highlighted by the FOMC minutes published on Wednesday. Policy makers at the US Federal Reserve were split over the benefits of slowing down (tapering) its $85bn a month asset purchases in September, highlighting the difficult task facing her as she prepares to take chairmanship of the central bank. Barack Obama stepped up his discussions with Congress as USA political leaders look for a solution to the budget crisis that could leave the country without money to pay its bills before the end of the month. The president will meet senior Republicans from the House of Representatives at the White House on Thursday, after talks with members of his Democratic party on Wednesday evening. US default swaps trade has soared on debt fears. Growing investor fears that Washington could miss a payment on its debt has led to a surge in activity in the market for derivatives that insure against a US default. Commodities were hit hard in Wednesday's trading sessions; ICE WTI oil closing down 2.05% at $101.37 per barrel, NYMEX natural down 1.00% at $3.68 per therm. COMEX gold closed the day down 1.31%, silver down 2.46% at $21.89 per ounce.http://blog.fxcc.com/market-analysis

Upwards scenario: We see potential to test our resistive barrier at 1.3516 (R1) later on today. Successful penetration above this mark might keep bullish sentiment in play and validate our intraday targets at 1.3531 (R2) and 1.3546 (R3). Downwards scenario: On the other hand, instrument might enable bearish pressure below the support level at 1.3485 (S1) and prolong initial downtrend development. Next targets on the way locates at 1.3471 (S2) and 1.3457 (S3).

Upwards scenario: While price is quoted above the 20 SMA, our technical outlook would be positive. Clearance of our next resistance level at 97.87 (R1) would suggest next intraday targets at 98.01 (R2) and 98.14 (S3) in perspective. Downwards scenario: On the other hand, depreciation below the support level at 97.65 (S1) would suggest next intraday target at 97.51 (S2) and any further weakening would then be limited to final support level at 97.37 (S3).